The effect of entrepreneurship on foreign direct investment: Empirical evidence from Central and Eastern Europe

Entrepreneurship has become an important and extensively researched concept in business studies. Research on foreign direct investment (FDI) has become widespread due to the growth of FDI and its importance in globalization. Most entrepreneurship studies examine the importance and influence of entrepreneurial orientation in a micro-level context. On the other hand, studies and research concerning FDI use statistical techniques to analyze the effect, determinants, and motives of FDI at the macroeconomic level, ignoring empirical studies of other non-economic determinants. In order to bridge the gap between the theory and empirical evidence on FDI and the theory and research on entrepreneurship, this dissertation tests for a possible relationship between entrepreneurship and FDI in Central and Eastern European countries. The relationship between entrepreneurship and foreign direct investment is investigated through regression analysis of pooled time-series and cross-sectional data after controlling for relevant significant effects. The results support that entrepreneurship has a significant positive effect on FDI.